S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7423

                            I N  S E N A T E

                             April 29, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Civil Service and Pensions

AN ACT to amend the administrative code of the  city  of  New  York,  in
  relation  to  membership  in  the  New  York city teachers' retirement
  system

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  (a)  of subdivision 7 of section 13-501 of the
administrative code of the city of New York, as amended by  chapter  650
of the laws of 1990, is amended to read as follows:
  (a)  "Teacher" shall mean the superintendent of schools, the associate
superintendents, the assistant superintendents,  the  director  and  the
assistant  director  of  the  divisions  of  reference and research, the
director and the assistant directors of the bureau of compulsory  educa-
tion, school census and child welfare, attendance teachers and specially
certificated  attendance officers who are first employed by the New York
city board of education on or after September  first,  nineteen  hundred
sixty-eight,  attendance  teachers and specially certificated attendance
officers who were members of  the  New  York  city  board  of  education
retirement  system and who, on or before December thirty-first, nineteen
hundred sixty-nine, gave notice to said board  of  education  retirement
system  of  their  intention  to transfer to the New York city teachers'
retirement system, the director of  attendance,  assistant  director  of
attendance,  chief  attendance  officer, division supervising attendance
officers and district supervising attendance officers of the  bureau  of
compulsory  education,  school  census and child welfare, supervisors of
school social workers who are first employed by the New York city  board
of education on or after September first, nineteen hundred sixty-nine or
who  were  members  of  the  New York city board of education retirement
system and who on or  before  December  thirty-first,  nineteen  hundred
seventy, gave notice to the said board of education retirement system of
their  intention  to  transfer to the New York city teachers' retirement
system, the members of the board of examiners,  the  directors  and  the
assistant  directors  of  special branches, the supervisor and assistant

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15163-02-6

S. 7423                             2

supervisors of lectures, all principals, vice-principals, assistants-to-
principals, heads of departments, and all regular and  special  teachers
of the public day schools of the city, and all employees of the board of
education  appointed  to  regular positions in the service of the public
schools at annual salaries and whose appointments were made or shall  be
made  from eligible lists prepared as the result of examinations held by
the board of examiners or from hiring lists established by the  chancel-
lor  of  the  board  of education, as the case may be, and all employees
employed by the board of education in the titles of teacher aide, educa-
tional assistant, educational associate,  auxiliary  trainer,  bilingual
professional  assistant, family worker, family assistant, family associ-
ate[,] OR parent program assistant[, who file an application for member-
ship in the retirement association on a form supplied by the  retirement
board].
  S 2. This act shall take effect immediately.
  FISCAL NOTE.--Pursuant to Legislative Law, section 50:
  This  proposed  legislation would amend paragraph (a) of subdivision 7
of Section 13-501 of the Administrative Code of the City of New York  to
mandate  paraprofessionals  into  the New York City Teachers' Retirement
System (TRS). Under current law, paraprofessionals have  the  option  of
joining TRS.
  The  effective  date  of the proposed legislation would be the date of
enactment.
  FINANCIAL  IMPACT  -  ADDITIONAL  ANNUAL  EMPLOYER  CONTRIBUTIONS:  If
enacted  into  law,  the ultimate employer cost for this proposed legis-
lation would be based on the number, ages, years of service  and  salary
of  those  paraprofessionals  that  would  otherwise not have elected to
become members of TRS.
  In order to estimate this group, we were provided with census data  of
approximately  5,600 paraprofessionals who are not members of TRS. Based
on this data and the population of paraprofessionals  who  have  already
joined TRS, we have estimated that approximately 2,700 paraprofessionals
would become members of TRS if this proposed legislation is enacted. The
remaining 2,900 paraprofessionals were assumed to have become members of
TRS at some point in their career even absent the proposed legislation.
  Based on these assumptions and other actuarial assumptions and methods
in effect for the June 30, 2015 (Lag) actuarial valuation used to deter-
mine the Preliminary Fiscal Year 2017 employer contributions for TRS, we
have  estimated  the annual cost of this legislation to be $7.3 million.
However, the total increase in employer contributions  for  Fiscal  Year
2017  would  be  approximately $15 million for the entire group of 5,600
paraprofessionals who would be mandated into the plan  in  the  proposed
legislation  is  enacted.  This  amount  includes the cost for the 2,900
paraprofessionals whose membership is being  accelerated  into  TRS  and
would  have  become  members  of  TRS  even  absent the enactment of the
proposed legislation. The additional annual employer contributions asso-
ciated with the 2,700 paraprofessionals who are assumed  to  become  TRS
members  only  if the proposed legislation is enacted has been estimated
to be $7.3 million of the $15 million. This employer contribution amount
is representative of the annual employer contribution  amount  for  each
future year if member participation does not significantly change.
  Note that the total increase in employer contributions for Fiscal Year
2017  would  be approximately $15 million. However, this amount includes
the cost for those paraprofessionals whose membership is being  acceler-
ated  into TRS and would have become members of TRS absent the enactment
of the proposed legislation.

S. 7423                             3

  If enacted on or before June 30, 2016,  these  additional  paraprofes-
sionals  would likely be included in the census data as of June 30, 2016
and if so the increase in employer contributions to TRS would  first  be
reflected in Fiscal Year 2018.
  OTHER COSTS: Not measured in this Fiscal Note are the following poten-
tial costs:
  * The additional administrative costs to TRS to implement the proposed
legislation.
  *  The  impact  of  this  proposed legislation on Other Postemployment
Benefit (OPEB) costs.
  STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief  Actu-
ary  for  the New York City Retirement Systems. I am an Associate of the
Society of Actuaries, a Fellow of the Conference of Consulting Actuaries
and a Member of the American Academy of Actuaries. I meet the Qualifica-
tion Standards of the American Academy of Actuaries to render the  actu-
arial opinion contained herein.
  FISCAL  NOTE  IDENTIFICATION: This Fiscal Note 2016-21 dated April 19,
2016, was prepared by the Chief Actuary for the New York City  Teachers'
Retirement  System.  This  estimate  is intended for use only during the
2016 Legislative Session.